Developing Order Fulfillment Strategies Around Omni-Channel Operations

Transcription

1 Developing Order Fulfillment Strategies Around Omni-Channel Operations Sponsored by: Presented by: Justin Stone Director of Business Development 2015 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

2 What is Omni-channel? A single, unified experience for the customer across all channels -Accenture Omnichannel commerce operations must utilize all their assets to improve efficiencies and reduce cost. These assets include but are not limited to multiple distribution facilities, retail outlets and kiosks in order to improve their fulfillment operations and meet the needs of all channels simultaneously. - Multi-Channel Merchant

3 What is Omni-channel? DC ONLINE STORE FULFILLMENT STRATEGY R IN-STORE WHOLESALER DROP SHIP DEAL SITES

4 Why is Omni-channel important? 2014 U.S. RETAIL = $5.0 TRILLION 2014 U.S. E-COMMERCE = 6% OR $304 BILLION

5 Traditional Distribution Model MANUFACTURER WHOLESALER RETAILER CONSUMER

6 Evolving Omni-Channel Model E-BIZ

7 Turning the Gears Towards Omni-channel People Technology Process

8 The Challenges of the Omni-Channel Model People Align internal resources Align workforce goals Workforce planning Workforce training Variation between daily and peak operations Influx of seasonal workers * Inventory Visibility * Cost & Velocity to Customer * Flexible Sourcing Rules Engine

9 The Challenges of the Omni-channel Model Process Sourcing Receiving Picking method Full case & less-than-case picking Replenishment Packing Shipping/outbound * Inventory Visibility * Cost & Velocity to Customer * Flexible Sourcing Rules Engine

10 The Challenges of the Omni-channel Model Technology Supporting D2C Growth with Existing Infrastructure I am at capacity. What now? Material handling automation in existing facility Separate D2C warehouse I have capacity. How can I repurpose or optimize it? Force D2C through existing material handling automation Segregate D2C * Inventory Visibility * Cost & Velocity to Customer * Flexible Sourcing Rules Engine

11 The Challenges of the Omni-channel Model Technology Supporting D2C Growth with Existing Software Siloed Inventory Across Multiple Applications & Instances Data warehouse No real-time inventory levels Fulfillment Software Limited My Omni-channel Capabilities D2C is treated as a store Segregate D2C * Inventory Visibility * Cost & Velocity to Customer * Flexible Sourcing Rules Engine

12 Mastering the Omni-channel Challenge Key Requirements to Implement a Successful Omnichannel Business Model Enterprise-wide inventory visibility More than a WMS Fulfilling outside the DC Software is the new hardware

13 Enterprise Inventory The Omni-channel Software Platform Order State & Event Mgmt Recurring Orders Intelligent Order Routing Presale and Back Orders Workflow and Notifications Returns Mgmt Order Exception Mgmt Order Versioning Partial Shipments Tax Calculation Drop Shipping Fraud Management Order Splitting Payment Processing Order Details / Status Lookup Order Escalation Workflow Order Capture Order Modification Order Cancellation Refunds / Credits Distributed Order Management Customer Service Store Fulfillment Stores Drop-Ship Vendors Distribution Centers In-Transit Inventory Supply Chain Visibility Ability to Promise (ATP) Ship-from-Store Store Pickup Click and Collect Store-to-Store Ship-to-Store Pick-and-Pack Carrier Integration * Inventory Visibility * Cost & Velocity to Customer * Flexible Sourcing Rules Engine * Courtesy of Forrester

14 Inventory Inventory Omni-Channel Happens in the Cloud Drop Shipping Purchase Orders Supplier(s) Inventory Direct to Consumer Warehouse(s) Fulfillment Retail Wholesale * Inventory Visibility Fulfillment * Cost & Velocity to Customer * Flexible Sourcing Rules Engine

15 Cloud-based vs. On-premise Fulfillment Platforms People Increase bandwidth of existing resources IT Department Workforce in warehouse Technology Real-time data from anywhere Connectivity & visibility Fast deployment Scalability Latest & greatest Process Streamlines & integrates entire IT platform Expedites flow of information Expands fulfillment capabilities

16 For More Information: Speaker Website: Or visit ProMat 2015 Booth 4862